With remote work increasingly becoming the “new normal”, businesses are looking up towards technologies like the Cloud to power their remote work needs. As a result, an increasing percentage of data and processes are moving towards the cloud.
Due to its inherent flexibility and instant scalability, the Cloud has proved to be the most effective answer to the rapid shift in enterprise needs. According to tech research firm Gartner, spending on the cloud is expected to further grow over the next few years.
Growth of Public Cloud
In the year 2021, the spending on public cloud services is expected to grow by 18%. This strong growth rate will propel the global market for public cloud to a whopping US $305 BN. For the year 2020, the size of this cloud segment stands at around US $257 BN.
Public Cloud Providers like dinCloud have offered highly secure and robust remote work platforms in the form of Cloud Hosted Virtual Desktops. With minimal re-factoring, these hosted desktops can be deployed across numerous remote work scenarios.
Cloud Spending v/s Total IT Spending
According to Gartner, it is expected that the ratio of cloud spending is likely to witness a sharp increase when compared to the total IT spend. In the year 2020, the spending on cloud computing solutions forms nearly 9% of the total spending on IT.
By the year 2024, it is expected that the ratio of cloud spending to that of total spending on IT will increase to over 14%. This spike may not seem significant in percentage terms, it will however translate into revenue growth of billions of dollars for cloud providers.
Effects of Pandemic on Cloud Spending
The research by Gartner has recorded a positive impact on cloud spending in the specific context of the Covid-19 pandemic. It is mainly due to the suitability of cloud solutions to the needs of a workforce that’s largely or entirely working remotely.
In the wake of this ongoing pandemic, thousands of businesses could no more access their on premise data and productivity resources, no matter how powerful or secure they may have been on paper.
The cloud on the other hand, proved to be a lifesaver for thousands of such businesses. This rapid cloud adoption also coincides with the long term financial goals of most enterprises that revolve around reducing both fixed and operating expenses for better viability.
Gartner’s research has found that nearly 70% of enterprises that are already leveraging the Cloud for their operational or productivity needs plan to increase their spending on the cloud. In other words, organizations are moving from a CapEx to OpEx model via the Cloud.
Vibrant Cloud Market Segments
The research also takes into account each sub-segment of the cloud computing industry by market share. Software as a Service or SaaS still remains the largest cloud segment by a large margin.
By the year 2021, it is expected that the total size of the SaaS market will surpass the US $117 BN mark. This translates into a year on year (YoY) increase of about 16%, which is remarkable given the current global business environment.
Platform as a Service or PaaS is a relatively smaller segment when compared to SaaS. However, the PaaS market is expected to witness a strong growth of above 26% between the years 2020 and 2021.
This is further proof of the fact that more n more organizations are turning to cloud based productivity tools and applications for their needs. It is also expected that the DaaS market will witness a very strong growth spread consistently over the next few years.
Remote work is here to stay, and with it, the growth of Cloud Computing may continue to surprise you over the few coming years. Contact dinCloud for reliable, secure and robust DaaS Solutions that have all the capability to power your remote work needs.